Ex-Local Authority Mortgages London

Several factors make lenders cautious: non-standard construction (concrete, steel frame, prefabricated systems), high-rise locations, deck access configuration, cladding concerns, and perceived resale risk. Lenders are concerned about their security if they had to repossess and sell. Not all of these factors are fatal but they do narrow your lender options. We identify which factors apply to your specific property and find lenders who are comfortable with that combination.

It varies by lender. Many will go up to 6 storeys without additional concern. Some will go higher. For buildings above 18 storeys, the options narrow considerably and lenders will want comfort on cladding and building safety. Above 20-25 storeys, only a small number of specialist lenders will lend, often at higher rates and with larger deposit requirements. We advise on the realistic lender options for your specific floor level and building.

Right to Buy mortgages work differently from standard purchases. The council discount you receive effectively counts as your deposit in most cases, which means you may need little or no additional cash deposit. However, you need a lender who is familiar with the Right to Buy process and the longer timescales involved with council purchases. We specialise in Right to Buy mortgage applications and know which lenders work well with the local authority purchase process.

This is one of the most difficult situations in London property currently. Without an EWS1 form (or the newer RICS guidance equivalent), many lenders will not lend. However, the position has become more nuanced since 2021. For buildings where remediation is funded (through the Building Safety Fund or developer commitment), some lenders will proceed. For buildings below 11 metres, lenders are generally more willing to lend even without an EWS1. We advise on your specific building's position and the current lender options.

It depends entirely on the lender. Woolwich and Reema construction are accepted by some specialist lenders. Wimpey No-Fines is accepted by a range of lenders. BISF steel frame houses are accepted by some. Prefabricated reinforced concrete (PRC) is the most difficult and usually requires certification that the structure has been approved or upgraded. We identify whether your specific construction type is mortgageable and with which lenders.

Typically 25% for most non-standard construction ex-local authority properties, though some lenders will consider 15-20% for better-quality stock in lower blocks with standard brick construction. Right to Buy purchases are different as the discount can count as deposit. We advise on the exact deposit requirement for your specific property before you commit to a purchase.